Valve is Worth Billions

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According to Forbes, co-founder Gabe Newell ranks 854 out of 1226 of the world's billionaires.

By Charles Onyett

According to a report by Forbes, Valve Software co-founder Gabe Newell is worth an estimated $1.5 billion. Forbes consulted a variety of analysts and investment bankers to arrive at an approximation of Valve's enterprise value, $3 billion. Because Newell owns over 50 percent of Valve, divide by two and now you know why Newell can afford to randomly buy lunch for Half-Life fans.

Valve's catalogue of games includes the Left 4 Dead, Team Fortress, Portal, Counter-Strike and Half-Life franchises. Counter-Strike: Global Offensive, a new multiplatform of Valve's popular competitive online shooter, and Dota 2, Valve's first attempt at a Defense of the Ancients-style game, are both expected in 2012.

Aside from game sales, Valve's pioneering efforts in the digital distribution space have proved to be extremely profitable. Valve's Steam service, which launched prior to the release of Half-Life 2, is the leading download service for PC games. The free-to-play transition of its online shooter Team Fortress 2 also proved to be quite successful.

Recent rumors have also hinted that Valve may be looking to dip into the hardware market with a so-called 'Steam Box' PC.